- The Supreme Court ruling No. 25585 of September 1, 2023, dealt with the nature of the applicable interests in the case of unclaimed VAT refunds and their accrual.
- The case examined a “piecemeal” business transfer from 2006-2007, reclassified by the office as a company transfer subject to registration tax.
- The company contested the registration levy and applied for a VAT refund in 2009, which was granted in 2015, followed by a dispute over the interest calculation on the refunded VAT.
- Lower courts favored the company, considering “compensatory” interests under DPR 602/1973 from the next six-month period after VAT payment.
- The Revenue Agency appealed, emphasizing the applicability of Law 29/1961, stipulating moratorium interests, from the date of the refund’s request.
- The Supreme Court sided with the Revenue Agency, citing Law 21/1969 for the repayment of improperly paid indirect taxes, emphasizing that the interests are moratory, becoming due upon recognition of the overpaid sums and running from the refund request date.
- It noted that the moratory interests should accrue from the refund request date in 2009, not the actual VAT repayment date in 2015.
- The decision’s clarity is appreciated, but it raises concerns about the differential treatment of VAT refunds compared to other domestic tax refunds, possibly conflicting with prior Court of Justice jurisprudence (case C-564/15) and necessitating careful evaluation.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
